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The Interpublic Group of Companies, Inc. (IPG - Free Report) reported solid third-quarter 2018 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate by 2 cents and improved on a year-over-year basis.
Net revenues of $1,895.7 million beat the consensus mark by 15 million and increased 3.4% year over year. The year-over-year growth was driven by organic revenue growth of 5.4%, which was partially offset by a negative impact of 1.3% from foreign currency movement and 0.7% from net divestitures.
Interpublic witnessed organic net revenue growth of 5% in the United States and 6% in international markets. Total revenues of $2,297.5 million increased 4.0% from the year-ago quarter.
Interpublic completed the acquisition of Acxiom LLC on Oct 1, 2018.
So far this year, shares of Interpublic have gained 11.5% against the 9.6% decline recorded by the industry it belongs to.
Operating Results
Operating income in third-quarter 2018 was $261.7 million, up 2.6% year over year. Operating margin on net revenues was 13.8% compared with 13.9% in the year-ago quarter. Operating margin on total revenues was 11.4% compared with 11.5% in the year-ago quarter. Total operating expenses declined 4.2% year over year to $2,035.8 million.
Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise
As of Sep 30, 2018, Interpublic had cash, cash equivalents and marketable securities of $1,860.3 million compared with $791 million at the end of 2017. Total debt was $3.34 billion as of Sep 30, 2018, compared with $1.37 billion at the end of 2017.
Share Repurchase and Dividend
During the third quarter of 2018, Interpublic repurchased 0.1 million shares at an aggregate cost of $2.6 million and an average price of $23.56 per share, including fees. In the first nine months of 2018, it repurchased 5.1 million shares of its common stock at an aggregate cost of $117.1 million and an average price of $23.03 per share, including fees.
In the reported quarter, the company declared and paid a cash dividend of 21 cents per share, totaling $80.4 million.
2018 Outlook
Interpublic reaffirmed its full-year guidance. The company expects organic revenue growth of 4-4.5% and operating margin expansion of 60-70 basis points.
Investors interested in the broader Business Services sector are keenly awaiting earnings reports of key players like Automatic Data Processing (ADP - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Automatic Data Processing will report first-quarter fiscal 2019 results on Oct 31, Waste Management and Republic Services will release third-quarter 2018 results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Interpublic (IPG) Tops Q3 Earnings Estimates, '18 View Intact
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported solid third-quarter 2018 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of 48 cents per share beat the Zacks Consensus Estimate by 2 cents and improved on a year-over-year basis.
Net revenues of $1,895.7 million beat the consensus mark by 15 million and increased 3.4% year over year. The year-over-year growth was driven by organic revenue growth of 5.4%, which was partially offset by a negative impact of 1.3% from foreign currency movement and 0.7% from net divestitures.
Interpublic witnessed organic net revenue growth of 5% in the United States and 6% in international markets. Total revenues of $2,297.5 million increased 4.0% from the year-ago quarter.
Interpublic completed the acquisition of Acxiom LLC on Oct 1, 2018.
So far this year, shares of Interpublic have gained 11.5% against the 9.6% decline recorded by the industry it belongs to.
Operating Results
Operating income in third-quarter 2018 was $261.7 million, up 2.6% year over year. Operating margin on net revenues was 13.8% compared with 13.9% in the year-ago quarter. Operating margin on total revenues was 11.4% compared with 11.5% in the year-ago quarter. Total operating expenses declined 4.2% year over year to $2,035.8 million.
Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise
Interpublic Group of Companies, Inc. (The) Price, Consensus and EPS Surprise | Interpublic Group of Companies, Inc. (The) Quote
Balance Sheet
As of Sep 30, 2018, Interpublic had cash, cash equivalents and marketable securities of $1,860.3 million compared with $791 million at the end of 2017. Total debt was $3.34 billion as of Sep 30, 2018, compared with $1.37 billion at the end of 2017.
Share Repurchase and Dividend
During the third quarter of 2018, Interpublic repurchased 0.1 million shares at an aggregate cost of $2.6 million and an average price of $23.56 per share, including fees. In the first nine months of 2018, it repurchased 5.1 million shares of its common stock at an aggregate cost of $117.1 million and an average price of $23.03 per share, including fees.
In the reported quarter, the company declared and paid a cash dividend of 21 cents per share, totaling $80.4 million.
2018 Outlook
Interpublic reaffirmed its full-year guidance. The company expects organic revenue growth of 4-4.5% and operating margin expansion of 60-70 basis points.
Zacks Rank & Upcoming Releases
Currently, Interpublic carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Business Services sector are keenly awaiting earnings reports of key players like Automatic Data Processing (ADP - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) . While Automatic Data Processing will report first-quarter fiscal 2019 results on Oct 31, Waste Management and Republic Services will release third-quarter 2018 results on Oct 25.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>